PRINCE2F Project Initiation and Stages Practice Question
A project is in the Initiation Stage. The Project Manager is compiling the Project Initiation Documentation and needs to include the justification for the project. Which component of the Project Initiation Documentation provides the business justification, including costs, benefits, risks, and timescales?
⚠ Common exam trap
A common mix-up: candidates confuse the Project Plan with the Business Case, because both contain costs and timescales; however, only the Business Case provides the justification.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The Business Case
The Business Case is the component of the Project Initiation Documentation that provides the business justification for the project. It captures the reasons, benefits, costs, risks, and timescales, and is reviewed throughout the project to confirm continued viability. The Project Plan, Benefits Review Plan, and Risk Management Approach support delivery and control but do not replace the Business Case.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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The Project Plan
Why it's wrong here
The Project Plan describes how and when the project's objectives will be achieved, including products, activities, resources, and tolerances. It supports the Business Case by showing what will be delivered and at what cost, but it does not itself contain the business justification. The Business Case is the document that explains why the project is worth doing.
- ✓
The Business Case
Why this is correct
The Business Case is the component of the Project Initiation Documentation that establishes whether the project is desirable, viable, and achievable. It documents the reasons for the project, the expected benefits, and the associated costs, risks, and timescales. It provides the ongoing justification for the project and is reviewed at each stage boundary to confirm the project remains worthwhile.
- ✗
The Risk Management Approach
Why it's wrong here
The Risk Management Approach defines the procedures, techniques, and responsibilities for managing risk throughout the project. It is part of the Project Initiation Documentation, but its purpose is to explain how risk will be handled, not to justify the project. The business justification, including costs and benefits, belongs in the Business Case.
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The Benefits Review Plan
Why it's wrong here
The Benefits Review Plan describes how and when the project's benefits will be measured and reviewed, including who is responsible for realising them. It is a supporting document that helps verify the Business Case, but it does not contain the full justification, costs, and risks. The Business Case remains the primary document for business justification.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.